A key to success in a global knowledge economy

Knowledge is the key to success. Organisations have to appreciate the competitive advantage of knowledge. Knowledge acquired has to be spread across  the  organisation  to  enable  others  to  leverage  on  the  same. Communities of practice in strategic areas are the best way to promote knowledge as an asset as they help greatly in the proliferation of knowledge. In knowledge economy, there is explosive development in knowledge which makes  it  difficult  for  the  organisations  to  spread  knowledge.  Increased complexity of knowledge needs greater specialisation and also collaboration. With  half-life  (the short  time  by which  the present knowledge  becomes obsolete) of knowledge getting shorter, it is tough for organisations to keep pace  with  the  rapid  changes  and  manage  knowledge  without  these communities.  An  organisational  change  could  be  due  to  internal  and external factors and there would be a huge onus to respond to the demands of  shifting  the  market.  This  could  cause  restructuring.  Communities  of practice are the best solution to make the organisation embrace change and make it adaptable. They help to connect people from different organisations that enable to share experiences of change and understanding the core knowledge requirements.

The knowledge economy poses an additional challenge. The knowledge markets are globalising quickly. Communities of practice help organisations to compete globally through information sharing across the globe. Apart from contributing to the success of the organisations in the world markets, the communities have other benefits. The advantage which the company will enjoy is the influx of innovative ideas which brings about excellence in the field of application, thereby solving an instant stream of the competitive problems. In globalised knowledge economy, the companies don't just compete for the market share but also compete for the talented people who have the expertise and the capabilities to generate and also implement the creative ideas. Finding and keeping the right people can also make a difference in the company's ability to become a market leader and also gain access to the venture capital. In fact, the knowledge driven markets make it essential  to  develop  the  knowledge  strategy  along  with  the  business strategy. A knowledge strategy details, in the operational terms, the way to develop and apply the capabilities needed for executing the business strategy.